Everybody has a dream to upgrade a bigger home or a new spacious house. But this dream is not a simple as it looks like. Where is multiple factors like financial availability market conditions and the crucial logistic aspect of selling old and buying new house must considered.
Recently real estate market trends suggest that home buyers are looking for special residences that cater to all their personal, professional as well as leisure needs.
But moving to a larger home is an expensive ordeal due to its bigger ticket size.
Spacious home with special challenges
For that, firstly study the market and establish the going rates for both the property you are planning to sell and property you are looking to buy.
Compare what you can expect to earn from the old property? And with your budget for the new home, also don’t forget the factor, such as moving charges, registration and stamp duty.
Sometime pre-approved home loan provides more negotiable power when buying a new home.
Last but not the list, it is critical to time the sale and purchase to reduce financial stress and guarantee a seamless transition.
Ideal new bigger home buying situation
In an ideal situation, one should use the loan secured by selling the old home to make a hefty down payment for the new.
This type of arrangement helps reduce the home loan and EMI burden.
But if one already has an existing loan, or other liabilities. This is the right time to sit with the financial advisor and draw out a sound financial plan.
Would it wise to use the money occur from the sale of your existing dept?
Use some percentage of your entire amount to make the down payment and remaining used for your favorite international vacation you are dreaming off?
Let your bank statement make the decision.
Also do not forget to factors in other miscellaneous charges that include the real estate agents commission, moving charges, registration charges, new interior design charges, etc.
Intangible charges of your new property buying
You will be dealing with a lot of paper works like stamp duty and registration, home loan application, no objection certificate from the housing society, property tax, OC, encumbrance certificate.
So, it is advisable to hire trusted legal counsel to help bill all the documents.
Selling your old house
Selling home requires various legal steps. Such as a preparing sell contract, and its conducting property inspection, conducting obtaining necessary permits from the society, and ensuring compliance with local regulation.
Hiring a real estate agent or resale service firm can ease the process for home owners.
These professionals specialize in this transaction and their experience can be valuable in streamlining the process and minimizing potential legal hurdles.
Determining a suitable price for the old home is also necessary. To reach diseases you conclusion it is advisable to go through local property listing or search the area for similar properties to get a general idea of what price home could be sold?
Also consulting with a real estate agent. Who can help arrive at a competitive yet reasonable listing price.
Know more about,
- Property Buying Checklist : House Buying Guide for First Time Buyers
- How to sell property online by owner with best rewarding way
- Real Estate Housing Market Valuation of Property Trends
- 10 Benefits of Working with Property Investment Companies
Crux
Selling an old property to buy a new one is not as easy. And one need to conclude proper research before taking these steps.
There are legally and administrative steps to clear while selling and old property to buy a new one which need to be met to ensure a smooth deal.